The Montana Petroleum Tank Release Compensation Board
Proposed 2009 Legislation
November 2008
The Petroleum Tank Release Compensation Board has been working on legislation for the past two years. The Board has been assisted by a fund solvency work group that consists of Board members, petroleum service station industry representatives, environmental consultants, and department of Environmental Quality Staff. A brief summary of the components of the proposed legislation is provided below. An excerpt of the proposed language can be obtained from the Boards November 17, 2008 Board packet, Actual wording of proposed legislation will be available on the Legislative Services Division web site, http://laws.leg.mt.gov/laws09/law0203w$.startup as LC402.
Double Wall Petroleum Storage Tanks
Federal Energy policy Act of 2005 resulted in a State requirement that owners/operators must upgrade to double wall USTs if significant alteration to the petroleum storage tank system is required. The need for the fund to provide incentive for owners/operators to install a double wall tank is no longer necessary. Releases from a double wall tank system discovered on or after October 1, 2009 will have the same co-payment as releases from single wall tank systems.
Controls on Fund Balance
Available funds were significantly impacted by the original ceiling and the floor of the fund which was established at the inception of the fund. Adjustment of both the ceiling and the floor are proposed to minimize future impacts.
Insurance Incentive
The board proposes language which will provide incentive for owners to have insurance and to use require owners/operators to make an insurance claim.
Statute of Limitations
The intent on the statute of limitation is to require the owner/operators to file for eligibility in a timely fashion to enable the Board to more effectively manage liabilities. Additionally, timely eligibility application will provide the Board every opportunity to recover from any insurance the owner/operator may have.
Review of Large Work Plan Activities
The Board has accepted a staff recommendation made on March 31, 2008 that the Board be advised on complex or expensive corrective action plans (generally over $100,000.00) before funds are obligated for the corrective action. The DEQ Petroleum Technical Section case manager will normally present the information to the board. The board will consider the staff recommendation in making the decision of when and how the funding for the plan will be obligated. The board may also render a decision on whether claims for the corrective action plan will be subject to the Executive Directors $25,000.00 reimbursement constraint.
Aboveground Storage Tank Owner/Operator Self Inspection
The board staff with the assistance of an advisory group developed a self inspection checklist for use by owner and operator of bulk aboveground storage tank facilities. The checklist was prepared to increase owner/operator awareness of the current requirements the Petroleum Tank Release Compensation Board consider for eligibility to the Fund. The self inspection checklist is available at: NewNewsDocs/SelfInspectionChecklist120208.pdf
The Aboveground Storage Tanks (AST) have not been subject to the same level of regulation as underground tanks. As a result the fund does not have the means to mitigate future risks. The board is considering requiring an inspection by a compliance inspector or a self inspection as a requirement for Fund eligibility. Several board members have concerns about consistent verification of compliance status of the aboveground storage tank facilities compared to the underground storage tank facilities. The board is considering how to proceed with the concept and will be seeking input from numerous interest groups and individuals throughout the state. Written comments about the self inspection checklist should be sent to Terry Wadsworth at twadworth@mt.gov.
Minimum Claim Policy Revision
The Board has raised their minimum claim for reimbursement amount to $500.00 with some exceptions. This new policy is made effective January 1, 2009. The old policy which had a minimum limit of $200.00 was established in January 1998. A copy of the policy is available on the web site at: http://deq.mt.gov/pet/BoardPolicies/claimamtpolicy.mcpx.
Consultants Meetings
The Department of Environmental Quality and the Petroleum Tank Release Compensation Board will hold a consultants meeting on May 15, 2009. This meeting will use remote video conferencing for the Billings and Kalispell areas. See the Agenda for details or visit our Meetings link http://deq.mt.gov/pet/meetings.mcpx for all our meetings and agendas. To be notified of future consultants meetings, be sure to subscribe to our consultants E-mail list at: http://svc.mt.gov/deq/ListServe/PETROstep1.asp.
